Lufthansa Follows Air France-KLM in Giving Up Stake in Air Europa

Lufthansa has withdrawn from acquiring a stake in the leisure airline Air Europa, a spokesperson for the German group revealed on Tuesday. This leaves only Turkish Airlines remaining in talks with Globalia, its parent company.

Lufthansa’s withdrawal from the bid comes days after the Air France-KLM group confirmed it was abandoning the talks.

“After thorough analyses and intense negotiations, we have at this stage decided against further engaging in a capital contribution and shareholding in Air Europa,” the German company told Reuters.

Air Europa has been in the process of selling part of its shares for several years, amid debt taken on during the pandemic.

The IAG Group, which controls British Airways, Iberia, Aer Lingus, and Vueling, had intended to take over the Spanish airline and acquired a 20% stake, but revised its plans last year due to regulatory issues.

Air France stated that negotiations with the Hidalgo family, owner of Globalia, were complicated by disagreements among its members.

Sources familiar with the talks also cited IAG’s participation as an obstacle to a deal.

It remains to be seen whether Turkish Airlines will accept the proposed terms. The airline is seeking to gain market share in the European air travel market amid a broad growth plan.

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